5 Human capital Two good ways to build human capital based advantages Look for

5 human capital two good ways to build human capital

This preview shows page 5 - 8 out of 8 pages.

5 Human capital Two good ways to build human-capital based advantages Look for skill sets that can create high value with your firm but low value elsewhere Once employees are hired, focus on building human capital that is firm-specific To convince employees to make these investments, often must combine it with internal promotion / opportunities for a long-term career These advantages, too, tend to be highly sustainable
Image of page 5
6 Economies of scale Replacement rentals is an example of a market with Low economies of scale at the store level High economies of scale at the firm level • Brand • Purchasing • Logistics • Resale Result: proliferation of retail outlets
Image of page 6